Kroger Company (KR)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,096,000 | 4,126,000 | 3,477,000 | 2,780,000 | 2,251,000 |
| Total assets | US$ in thousands | 50,505,000 | 49,623,000 | 49,086,000 | 48,662,000 | 45,256,000 |
| Operating ROA | 6.13% | 8.31% | 7.08% | 5.71% | 4.97% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,096,000K ÷ $50,505,000K
= 6.13%
Operating return on assets (ROA) is a key financial metric that indicates how efficiently Kroger Company is utilizing its assets to generate operating income. The trend analysis of Kroger's operating ROA shows a fluctuating pattern over the past five years.
In the most recent fiscal year ending on February 3, 2024, Kroger's operating ROA was 6.13%, which represents a decrease compared to the previous year's figure of 8.31% (as of January 28, 2023). Despite the decline, Kroger's operating ROA remained above the levels recorded in the two preceding years.
Looking further back, Kroger's operating ROA was 7.08% as of January 29, 2022, and 5.71% as of January 30, 2021. The data indicates an improving trend from 2021 to 2023, with a spike in operating ROA in 2023, followed by a slight decline in the most recent year.
The consistent positive values of the operating ROA suggest that Kroger has been effectively generating operating income relative to its assets base each year. However, the recent decline in the ratio may prompt further analysis to understand the factors contributing to this change and whether it is a sustainable trend.
Overall, the trend analysis of Kroger's operating ROA over the past five years highlights the company's varying performance in efficiently utilizing its assets to generate operating income.
Peer comparison
Feb 3, 2024